css contributing member statement guide 2015-16 –16 find out how your super benefit is calculated...

2015 –16Find out how your super benefit is calculated

and how you can make CSS work for you

Contributing Member Statement Guide

Your benefit options* Please refer to your MSG for further explanation.

The invalidity and death benefits shown below are the default options provided by CSS, and are payable to either you or your dependants. Please refer to your MSG to see if there are any other benefit options available to you. The below amounts have been calculated assuming your benefit would not be reduced because of the application of a BCC.

Other important information

Benefit classification certificate (BCC) Superannuation guarantee top up

Contributions paid since 30/06/07 Your preservation age

Minimum amount on exit Your SIS upper limit

Ex-provident account member Your preserved benefit at 30/06/16

Restricted units Your restricted non-preserved benefit at 30/06/16

Rejected units Your unrestricted non-preserved benefit at 30/06/16

Age 60 units Investment option

Your surcharge debt Your total surcharge debt from the Australian Taxation Office’s (ATO) assessment of your surchargeable contributions.

Surcharge debtat 1/07/15

Surcharge debt incurred1/07/15 to 30/06/16

Payments1/07/15 to 30/06/16

Interest1/07/15 to 30/06/16


Your resignation benefit

Your options if you resign What you would have beenallocated on exit on 30/06/16

1. Preserve total benefit in the CSS

Plus Deferred employer benefit (generally a deferred CPI-indexed pension entitlement)

OR 2. Lump sum now

Plus Lump sum paid into a rollover fund

* Your benefit options represent your potential withdrawal benefit at 30 June 2016. It is based on amounts that would be attributable to your account if you left CSS on 30 June 2016. Keep in mind that the value of your super account may change and before leaving CSS, you should ask us for more information about your withdrawal benefit at that time.

If you have not reached your preservation age at claim date, the amount of lump sum you are able to access as cash will be limited to the amount of your SIS upper limit. The remainder will remain preserved in a rollover institution until you reach your preservation age.

Your age retirement benefit

Your options if you retire What you would have beenallocated on exit on 30/06/16

1. CPI-indexed pension p.a.

Plus Lump sum†

OR 2. CPI-indexed pension p.a.

Plus Non-indexed pension p.a.

Plus Lump sum†

OR 3. Lump sum† (ex-provident account members only)

† Includes productivity components if administered by us, any super co-contributions and transfer amounts.

Your benefit if you are retired on invalidity

Your options if you become an invalid

What you would have beenallocated on exit on 30/06/16

Maximum pension p.a.

Plus Lump sum

Your death benefit

Your eligible spouse’s options if you die

What would have been allocated on exit on 30/06/16


Plus Lump sum

OR

Lump sum payable to your estate

CCMSP2 2016

Contributing Member Statement1 July 2015 to 30 June 2016

Amounts on this statement are based on information supplied by employers and may be subject to adjustment. Further information explaining parts of this Member Statement can be found in your Member Statement Guide (MSG) provided in this pack.

Your details *Are your details incorrect? If so, please let your personnel section know.

Name* Your contribution rate at 30/06/16*

Date of birth* Your employment status at 30/06/16*

Account (AGS) number

Remember to quote your AGS number when making enquiries about your superannuation.

Your hours per fortnight at 30/06/16*

Your superannuation salary at 30/06/16*

Based on your salary and recognised allowances at your most recent birthday. For members working part-time, the salary shown is the amount you would receive if you were working full-time.

Tax File Number provided*

Your membership commenced on* Your period of contributory membership

Rate of allotment of net earnings 1/07/15 to 30/06/16#

# See page 1 of the MSG for an explanation of the calculation of this rate.

Your super details Your value in the Fund is made up of the following components:

Benefit component What you wouldhave been allocatedon exit on 1/07/15

Contributions/amounts received

1/07/15 to 30/06/16

Fund earnings1/07/15 to 30/06/16

What you would havebeen allocated onexit on 30/06/16

1. Your member component

consisting of basic contributions and earnings

and supplementary contributions and earnings

2. Your productivity component

3. Super co-contributions

4. Low income super contributions

5. Transfer amounts

6. Super Guarantee Charge amounts

7. Total equity (1+2+3+4+5+6)

i

This is importantThe information in this Member Statement Guide (MSG) is general information only and has been prepared without taking into account your personal objectives, financial situation or needs. You should consider any advice in this MSG in light of your personal objectives, financial situation or needs before acting on it.

You may wish to contact a licensed financial planner to do this. If you are looking at acquiring a financial product, you should obtain a CSS Product Disclosure Statement (PDS) and consider its contents before making any decisions.

This document is part of your periodic statement for your CSS super account and was prepared on 22 July 2016 by Commonwealth Superannuation Corporation (CSC) ABN: 48 882 817 243 AFSL: 238069 RSEL: L0001397, Trustee of CSS ABN: 19 415 776 361 RSE: R1004649. The components of your periodic statement are the Member Statement, Transaction Summary and Member Statement Guide (MSG). The 2015–16 Annual Report will be available online at css.gov.au

We are required to provide you with any additional information you may reasonably need to understand your investment in CSS, including your benefit entitlements (such as death and invalidity benefits). Details of investment options that may be available to you are also available on request from CSC. To access or request this information, please contact us as set out in the Contact us section of this MSG.

The guideUse the following guide to help you navigate the different sections of your Member Statement.

css.gov.au


















1/07/15 to 30/06/16









5. Transfer amounts


7. Total equity (1+2+3+4+5+6)


















1/07/15 to 30/06/16









5. Transfer amounts


7. Total equity (1+2+3+4+5+6)














Payments1/07/15 to 30/06/16

Interest1/07/15 to 30/06/16






OR 2. Lump sum now







Plus Lump sum†



Plus Lump sum†







Plus Lump sum

Your death benefit




Plus Lump sum

OR


CCMSP2 2016














Payments1/07/15 to 30/06/16

Interest1/07/15 to 30/06/16






OR 2. Lump sum now







Plus Lump sum†



Plus Lump sum†







Plus Lump sum

Your death benefit




Plus Lump sum

OR


CCMSP2 2016 ii

2. Your super details (see page 1)

1. Your details (see page 1) 3. Your benefit options (see page 3)

4. Other important information (see page 6)

Four simple steps to guide you through

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Your detailsRate of allotment of net earnings 1 July 2015 to 30 June 2016The rate of allotment of net earnings takes into account Fund earnings, your opening balance and other changes to your account balance such as contributions and transfers paid into your account during the reporting period. The net change to your opening account balance is averaged across the year in determining this percentage.

Investment option performance

CSS investment option performance

1 year to 30 June 2016

5 years to 30 June 2016

10 years to 30 June 2016

Default Fund 1.9% 8.2% 5.5%

Cash Investment Option 1.8% 2.5% 3.6%

All returns are calculated as the compound average rate of earnings after fees and taxes. Be aware that the long-term performance figures outlined above are for the investment options as a whole and are not your personalised investment returns.

Your super detailsComponents of your total benefit

Your member component (1)Your member component is made up of your personal basic and supplementary contributions and accrued Fund earnings (positive or negative) on those contributions.

Your productivity component, if applicable (2)Your productivity component is made up of the amount your employer contributes each fortnight (less 15% contributions tax on payments made after July 1990) and any accrued Fund earnings (positive or negative) on those employer contributions.

Government contributions received

Super co-contributions, low income super contributions & Super Guarantee Charge amounts – components (3, 4 & 6)These sections show any Australian Taxation Office (ATO) super co-contributions, low income superannuation contributions and super guarantee charge amount payments made to your CSS super account and any earnings between 1 July 2015 and 30 June 2016.

If you made personal contributions to your super in 2015–16 and are eligible to receive the super co-contributions and/or low income superannuation contributions, payment to the CSS will not be made until after 30 June 2016 (so it won’t be shown in this section). This is because you need to lodge your 2015–16 income tax return before the ATO can assess your eligibility. Similarly, if you are eligible for an ATO super guarantee charge payment, this will be reported on your statement in the reporting period in which it is received.

2

When you stop working and take your CSS benefit, any super co-contribution, low income super contributions or super guarantee charge contributions you have received will be paid to you as a lump sum.

For more information on government super co-contributions, low income superannuation contribution and super guarantee charge contribution payments visit ato.gov.au

Transfer amounts (5)This section shows any amounts you’ve transferred from other super funds. When you stop working and take your CSS benefit, any transfer amounts will be paid to you as a lump sum.

Total equity (7)This section shows the total value of your equity amounts at 1 July 2015 and 30 June 2016. It may include your member component, productivity component, super co-contributions, low income super contributions, super guarantee charge payments and transfer amounts.

What you would have been allocated on exit on 1/07/15This section shows the withdrawal benefit that would have been paid to you if you had ceased employment and your benefit was processed on 1 July 2015.

Contributions/Amounts received 1/07/15 to 30/06/16This section shows your personal basic contributions, supplementary contributions and productivity contributions, along with any co-contributions, low income superannuation contributions, super guarantee charge amounts and/or transfer amounts, paid into your account during the financial year.

Fund earnings 1/07/15 to 30/06/16This column shows the Fund earnings for the year, for each component of your benefit (for more information on performance see our Annual Report at css.gov.au).

CSC determines an earning rate for the Default and Cash Investment Option for every business day. These rates are used to calculate entitlements for members exiting CSS.

For contributing members, the earnings are allocated monthly on the basis of the rates determined for that month.

Keep in mind that if you leave as an age retiree, your Consumer Price Index (CPI)-indexed pension isn’t affected by investment performance, because it’s determined by your final superannuation salary, length of membership and age at exit.

The member and productivity components of your benefit, and any super co-contributions, low income superannuation contributions, super guarantee charge amounts or money you’ve transferred from other funds, are affected by Fund earnings. See our CSS PDS at css.gov.au for more details.

What you would have been allocated on exit on 30/06/16This section shows the funded withdrawal benefit that would have been paid to you if you had ceased employment and your benefit was processed on 30 June 2016.

Keep in mind that the amounts on which this information is based may change. You should ask us for an estimate before making a claim for your CSS entitlement.

http://ato.gov.au

css.gov.au

http://css.gov.au

3

Your benefit optionsYour resignation benefitIf you resign, you can choose one of the following options, depending on your circumstances:

1. Preserve all your benefits in CSS until you reach your minimum retirement age (generally 55). This will become a deferred benefit which you can take in the following ways:

> CPI-indexed pension and a non-indexed pension funded by your member and productivity components.

> CPI-indexed pension and a non-indexed pension funded by your member component only and a lump sum of your productivity component.

> A lump sum, if you’re an ex-provident account member and you claim your preserved (deferred) benefit on (or after) reaching the age of 60.

Note: If you are under your preservation age when you claim your deferred benefit or not permanently retiring from the workforce, any amount of your lump sum in excess of your SIS upper limit must be paid into a rollover fund.

2. You can take your member component as a cash lump sum up to your SIS upper limit. Any excess above the SIS upper limit must be paid into a rollover fund along with your superannuation guarantee top-up and productivity component. If you choose this option, you will forego most of your employer-financed component, which could be the largest component of your benefit. We recommend you seek professional financial advice before selecting this option.

3. You may have the option to pay your CSS benefit (your member, productivity and employer components) as a transfer value into an eligible superannuation scheme. For a list of eligible super funds visit css.gov.au

Any amounts shown on your Member Statement reflect your situation on the date shown and may change. You can use the CSS i-Estimator to estimate your resignation benefit and other benefit options at various dates. You will need an Access Number to use this service. If you don’t have an Access Number or you’ve misplaced it call 1300 000 277.

For more information about your resignation benefit options, refer to our website css.gov.au or call 1300 000 277.

Your age retirement benefitIf you retire and have met your minimum retirement age, you can choose one of the following options:

1. CPI-indexed pension and a non-indexed pension funded by your member and productivity components.

2. CPI-indexed pension and a non-indexed pension funded by your member component only and take a lump sum of your productivity component.

3. If you’re an ex-provident account member and you retire at the age of 60 or later, you can take your total benefit as a lump sum.Note: If you are under your preservation age when you claim your age benefit or not permanently retiring from the workforce, any amount of your lump sum in excess of your SIS upper limit must be paid into a rollover fund.

If you are not permanently retiring from the workforce, you can postpone the payment of all, or some, of your age retirement benefit (subject to preservation age).

css.gov.au

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4

The amounts shown in this section reflect your benefit at 30 June 2016 and may change. You can use the CSS i-Estimator to estimate your retirement benefits and other benefit options at various dates. You’ll need an Access Number to use this service. If you don’t have an Access Number or you’ve misplaced it call 1300 000 277.

For more information about your retirement benefit options visit css.gov.au or call us on 1300 000 277.

Your benefit if you are retired on invalidityAs a CSS contributing member you automatically receive permanent invalidity cover at no extra cost.

You’re covered for a benefit based on the entitlement you would have received if you had worked to age 65.

The invalidity benefit shown on your Member Statement is the default option provided by CSS that is payable to you if you don’t select an alternative benefit option. This is the Maximum pension (as described on this page).

Any amounts shown in this section reflect your situation at 30 June 2016 and may change. They have been calculated assuming that your benefit would not be reduced because of the application of a benefit classification certificate (BCC). If you have a BCC and would like to know the amount of benefit that would be payable on invalidity call 1300 000 277. Your BCC status is shown in the ‘other important information’ section on the reverse side of your Member Statement.

In the event of permanent invalidity, you can choose:

Maximum pensionThis is the value shown on your Member Statement and provides you with the maximum pension payable. This includes a CPI-indexed standard pension and an additional (non-indexed) pension. The additional pension is purchased with your basic member contributions and earnings.

Any supplementary member contributions and earnings and your productivity component will be paid to you as a lump sum.

Standard pension and refundTake a CPI-indexed standard pension and a lump sum of member and productivity components.

Lump sum onlyIf you have less than 15 years of contributory membership, and the medical reason for your invalidity retirement is related to a condition on your BCC, you also have the option of taking your entire benefit as a lump sum.

You can use the CSS i-Estimator to estimate your invalidity benefit and other benefit options at various dates. You will need an Access Number to use this service. If you don’t have an Access Number or you have misplaced it call 1300 000 277.

For more information about invalidity benefits visit css.gov.au or call 1300 000 277.

css.gov.au

css.gov.au

5

Your death benefit

If you die while you’re a contributing memberIf you die while you are a contributing member, the pension your eligible spouse receives is a percentage of the invalidity pension you would have received if you’d retired on invalidity grounds.

The pension is increased for any eligible children, and the various percentages are shown in the second column of the following table.

Your eligible spouse can choose any of the benefit options that would have been available to you if you had retired for invalidity reasons. For example, if they decided to take a CPI-indexed pension and a lump sum, they would be paid:

> a pension of 67% of your potential invalidity CPI-indexed pension > 100% of the lump sum that you would have received (that is,

a lump sum of your member and productivity components).

Other CPI-indexed and non-indexed pension percentages apply if your invalidity retirement is related to a condition on your BCC and you have less than 30 years of prospective membership.

If you don’t have any dependants, a lump sum made up of your member component, superannuation guarantee top-up and any productivity component will be paid to your estate following your death.

For more information, refer to our website css.gov.au or call 1300 000 277.Note: The option shown on your statement is the maximum pension option.

If you die while you’re receiving a pensionIf you die while you’re receiving a CSS pension, your eligible spouse is entitled to receive a pension that’s a percentage of the pension being paid to you at the time of your death. The percentage payable will depend on whether you choose the higher dependant pension option when you stop working. The various pension percentages are shown in the following table.

Higher dependant pension optionIf you retire on the grounds of age or involuntary retirement, or claim your preserved benefit on age grounds, you can choose to receive a lower pension at that time in return for your eligible spouse and/or eligible children receiving a higher pension when you die (see the table below).

You can choose to reduce your pension to 93% of the normal pension rate and, in return, your eligible spouse and/or eligible children will receive a higher pension when you die (see the table below).

This option is not available if you retire on invalidity grounds or if you die while you’re still a contributing or deferred benefit member.

The following table shows the percentage of pension payable where there’s one eligible spouse and up to three eligible children.

Calculation of spouse’s pension

Number of dependants Amount as apercentage offormer member’sstandard ratepension

Amount as apercentage offormer member’sreduced ratepension*

Spouse only 67% 85%

Spouse and one child 78% 97%

Spouse and two children 89% 108%

Spouse and three or more children

100% 108%

* These percentage rates apply to members who choose the higher dependant pension option when they retire.

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Other important informationBenefit classification certificate (BCC)If you have a BCC, it will be shown in this section of your member statement.

Are you entitled to full cover benefits?A BCC lists any pre-existing medical conditions that might affect your ability to work to retirement age. If this applies to you, you would have received a BCC following your medical examination when you first joined CSS. If you have a BCC and the medical reason for a claim for invalidity or death benefits is related to a condition on your BCC, you or your dependants may not be eligible to receive full invalidity or death benefits. In some cases, the benefit is a lump sum only, with no pension options. The BCC will no longer apply if you have 20 years or more of CSS contributory membership.

The death and invalidity estimates shown on your Member Statement are calculated assuming that BCC restrictions don’t apply.

Revoking your BCCIf you have medical proof that you’re in good health, you can ask CSC to consider revoking your BCC or reconsider the decision to issue the certificate. If you’d like to discuss this, please call 1300 000 277.

Non-disclosure of a medical conditionIf CSC believes that you didn’t properly disclose a pre-existing condition at the time of your medical examination, you or your dependants may not receive full invalidity or death benefits.

The pre-existing condition will be subject to the same considerations as if it had been specified on your BCC.

Minimum amount on exitYour minimum amount on exit (MAE) is a guaranteed dollar amount payable regardless of Fund performance.

This amount is contributions and earnings to 30 June 2003 plus contributions (not including earnings) from 1 July 2003 to 30 June 2007.

This amount is made up of member and productivity contributions, transfers from other funds and super co-contributions.

We developed the MAE to make sure a previous change in our earning allocation policy did not retrospectively affect the equity in members’ accounts.

Your preservation ageSuperannuation law places restrictions on when you can access superannuation benefits, especially lump sums. One of these restrictions is called your ‘preservation age’ and it applies in addition to the other restrictions on withdrawing your benefit.

Generally, if you have not reached your preservation age your cash lump sum is restricted to your SIS upper limit and the balance of your lump sum must be rolled over.

7

Preservation age

Date of birth Preservation age

Before July 1960 55

1 July 1960 – 30 June 1961 56

1 July 1961 – 30 June 1962 57

1 July 1962 – 30 June 1963 58

1 July 1963 – 30 June 1964 59

After 30 June 1964 60

Your SIS upper limitThe Superannuation Industry (Supervision) Regulations 1994 (SIS) place certain restrictions on the amount of cash lump sum that can be paid to members who are not permanently retiring from the workforce, or have not reached their preservation age.

This means if you’re not permanently retiring from the workforce or have not reached your preservation age, any cash lump sum paid to you can’t exceed your SIS upper limit and may be further restricted by your age and the benefit option you exit under. Any CSS lump sum amount that’s higher than the SIS upper limit must be rolled over to a rollover fund.

IMPORTANTThe following details are based on the assumption that you have not left the workforce.

Your preserved benefit at 30 June 2016Your preserved benefit cannot be claimed until you cease contributory membership and meet a condition of release.

Your restricted non-preserved benefit at 30 June 2016Restricted non-preserved benefits are benefits that can be paid when you stop Australian Government employment, subject to CSS rules. In CSS, this amount is limited to your SIS upper limit and could be further restricted by your age and the benefit option you choose on cessation of contributory membership.

Your unrestricted non-preserved benefit at 30 June 2016Unrestricted non-preserved benefits are benefits that can be paid out of a superannuation scheme at any time, subject to CSS rules. In CSS, no benefits are payable until you stop working in Australian Government employment or choose to claim your preserved benefit. This means your unrestricted non-preserved benefit in CSS will always be nil while you’re a contributing member.

Investment optionThis section shows the investment option where your super was invested at 30 June 2016. You can choose to invest your super in the Default Fund or Cash Investment Option. For more information about investments and investment options visit css.gov.au

Superannuation surchargeThe Australian Government abolished the superannuation surcharge on 1 July 2005. However, you may still have to pay it in certain circumstances. For example, if your adjusted taxable income since 1996 has been higher than the annual thresholds, or you didn’t provide your Tax File Number (TFN) to CSS, you may have a surcharge debt in relation to certain employer contributions reported to the ATO up to and including the 2004–05 financial year. The ATO determines whether you’ve incurred a surcharge debt. If you have, the amount will be shown in the surcharge debt table on your Member Statement.

If you have a surcharge debt, you don’t have to pay it now – it will be deducted from your CSS benefit when it’s paid to you. If you want to, you

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can reduce your surcharge debt by making payments. Interest calculated at the 10-year Treasury bond rate will be applied to any outstanding balance of your surcharge debt account as at 30 June each year.

If you have any questions in regards to your surcharge assessment, please contact the ATO on 13 10 20.

Transaction SummaryYour Transaction Summary shows transactions on your account between 1 July 2015 and 30 June 2016 including:

> any payments (including member and productivity contributions, transfer amounts and co-contributions) that were made to your account

> monthly Fund earnings allocated to your account > contributions tax deducted from your account > indirect costs of your investment > activity fees.

Things you should know Redundancy If you’re made redundant see the CSS PDS or visit css.gov.au or call 1300 000 277.

Privacy Notice Personal information you or a third party provide is collected, held, used and disclosed as required or authorised by law in accordance with the privacy policies and notice, available via css.gov.au or by contacting us on 1300 000 277 for the purpose of managing your super. This includes the management of superannuation investments, providing you with superannuation products and information, the administration your account, conducting market research and product development. The privacy policies and notice contain important information about how your personal information is handled, including your rights to access and update that information and how you may complain about a breach of your privacy.

FeedbackIf you have a complaint, you can be sure it will be dealt with as quickly as possible.

To register your complaintWe want you to be completely satisfied with our service, but if you feel you need to make a complaint, just call 1300 000 277.

If you’re not satisfied with the response, ask to speak to a supervisor. If you still feel the issue has not been explained or resolved to your satisfaction, contact the Complaints Officer:

Email: [email protected]: 02 6272 9081Fax: 02 6272 9001Post: CSS Complaints Officer GPO Box 2252 Canberra ACT 2601

If you’re still not satisfiedThe Superannuation Complaints Tribunal is an independent dispute resolution body set up by the Australian Government to resolve members’ complaints. For information about the tribunal visit sct.gov.au

You can lodge a complaint with the tribunal free of charge if you’re dissatisfied with our response or if we can’t resolve your situation within 90 days. You can contact the tribunal in one of the following ways:

Email: [email protected]: 1300 884 114Fax: 03 8635 5588Post: Superannuation Complaints Tribunal Locked Bag 3060 Melbourne VIC 3001

http://css.gov.au

mailto:[email protected]

sct.gov.au


www.css.gov.au

[email protected]

PHONE1300 000 277

POSTCSS GPO Box 2252 Canberra ACT 2601

FAX(02) 6272 9612

WEBcss.gov.au

OVERSEAS CALLERS+61 2 6272 9621

Contact usIf you’re making decisions about your super, you can get yourself off to a good start by visiting css.gov.au where you’ll have easy access to:

> our CSS PDS > a glossary of terms > forms and publications > news and information > free At Work for You workshops (including dates, locations and

booking facility) > Member Services Online where, with a secure Access Number,

you can: > use the CSS i-Estimator (our online calculator) to estimate

your benefit > update your address and contact details > register for an online Member Statement > view and download your Member Statement > pay surcharge and leave-without-pay contribution via BPAY.

If you’ve lost or forgotten your secure Access Number, you can reset it in the member services online login area at css.gov.au. If you need help with this, or with any other CSS information, contact us:

Email: [email protected]

Phone: 1300 000 277

Fax: 02 6272 9612

Post: CSS Member Services GPO Box 2252 Canberra ACT 2601

css.gov.au

css.gov.au


css contributing member statement guide 2015-16 –16 find out how your super benefit is calculated...

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